New Fortress Pens LNG Supply Deals
US firm New Fortress Energy (NFE) has signed two long-term deals to procure LNG for its gas and power businesses in Puerto Rico, Mexico and Nicaragua, it said on December 21.
NFE did not say which supplier would provide the gas. But together with previous purchase agreements for its Jamaican operations, it said the new contracts would cover 80% of expected needs across its portfolio of terminals and other assets.
"As a company, our goal is to match our LNG purchases as much as possible with our customer volumes, thus reducing our exposure to changes in the market price for LNG across our portfolio," NFE CEO Wes Edens said. "Approximately 70% of our gas contracts with our customers are indexed to Henry Hub and with the contracts signed today, we will match most of those volumes with these commitments that are also indexed to Henry Hub."
NFE commissioned an LNG import facility in Puerto Rio in 2018 that supplies gas to a combined-cycle power plant, while its regasification projects in Mexico and Nicaragua are still under development.